Michigan UIA Tax Documents in the Mail
Michigan Unemployment Insurance Agency Tax 1099-G Document is in the Mail
Your official FORM 1099-G, Certain Government Payments form is in the mail, and may already be something you received for 2020 tax documents. It is real, don’t lose it.
Wait I have to pay taxes on my Unemployment Insurance Agency payments?
Yes you do. It is considered income, and the State of Michigan collects income taxes. What the government giveth, the government taketh away.
But I Didn’t Collect Unemployment Insurance Payments or Benefits in 2020, I was working the whole time.
Did your employer cut your hours, and participate in the Workshare program? Workshare allowed your employer to cut your hours, so you did work, and in return they filed unemployment on your behalf to allow you to receive reduced payments from the Michigan Unemployment Insurance Agency? If that sounds correct, then yes, you need to file this form with your tax return to for Federal, and Michigan State taxes.
If that does not sound like something your employer did for you, and you are certain you did not collect unemployment benefits in 2020 then we have some bad news for you.
Buckle up, you may be the victim of identity theft, a fraudster may have used your social security number and name to file benefits on your behalf, and collected your payments.
Embedded State of Michigan Note
What if I know this was identity fraud?
You should report this to the http://michigan.gov/uia site as soon as you become aware of this fraudulent activity. Click on “Report Identity Theft” and include as much detail as possible. You will also need to submit a completed version of Form UIA 6349, Statement of Identity Theft, with your report.
You may also want to call 1-866-500-0017 to get more questions answered from the UIA.
What happens next?
A UIA investigation will commence and when the identity theft is confirmed, a corrected 1099-G to you and the Internal Revenue Service (IRS) will be issued.
How long does that process take?
The state advises to be please be patient. The rampant imposter fraud and identity theft across the country requires that UIA individually review each claim of suspected fraud. If
you have already provided information to the UIA, there is no need to resubmit information unless asked by UIA.
I don’t agree with the amount the 1099-G says I earned.
Amounts sent to third parties on your behalf (i.e.: Child Support, Income Tax Withholdings, Benefit Overpayments, etc.) are included in Box 1 on Form 1009-G in the year that they are paid. As a result of these withholdings, claimants may have received less than what is reported on the Form 1099-G. You are encouraged to consult with the IRS to learn how these deductions affect your taxes and how to report them.
I need a corrected 1099-G form there is some error on mine
Complete Form UlA 1920, Request to Correct Form 1099-G, and submit it to UIA. This form can be found at michigan.gov/uia. Click on Forms for Workers.
Mail completed forms to:
Unemployment Insurance Agency,
1099-G, P.O. Box 169, Grand Rapids,
MI 49501-0169
Could this reduce my 2020 tax refund that I was expecting?
We are not tax specialists, or Certified Public Accountants (CPA) but for example if you did not elect to have your income taxes withheld when you set up your unemployment benefit payments, you will have to owe income taxes to the state of Michigan, and possibly to the Federal government as well. Now if you had extra taxes witheld from your prior employer(s) you may already be covered, but this could offset your refund amount that you may otherwise be expecting.
As always the best tax strategy is actually to owe nothing extra to the government, and have as small of a tax refund as possible. If you do find yourself with a tax refund, and the ability to save it, check out our Yotta online banking review to get higher interest rate return.
When can I file my 2020 tax return anyway?
Another new development is that for the Federal Government tax return unlike in years prior, you can’t send in your return before February 15, 2021, which is two weeks later than normal. This will also delay your ability to get any eligible tax refund that might be owed to you.
Is there any way to file taxes for free?
For our Detroit area Michigan readers who have income under $57,000 the Accounting Aid Society, will be conducting FREE virtual tax preparations online and by “drop and go”.
You can start booking appointments now by:
- Calling directly at 313-556-1920 or
- Schedule your own VITA ACE online tax or “drop and go” appointment: Accounting Aid Society Tax Prep Appointments.
Learn more about the Accounting Aid Society’s VITA ACE program here.